PRINCE RUPERT – The City of Prince Rupert, through its wholly owned subsidiary Prince Rupert Legacy Inc., has recently announced that a non-binding Letter of Intent (LOI) has now been entered into with Pembina Infrastructure & Logistics, [a wholly owned subsidiary of Pembina Pipeline Corporation] (Pembina) for the purposes of exploring a liquefied petroleum gas (LPG) export terminal on Watson Island.
“We are looking forward to a new beginning for our community as we work towards putting Watson Island back on the tax roll,” says Mayor Lee Brain.
“Pembina is a Canadian company with a proven track record for supporting the communities in which they operate and has an industry-leading history of operating safely. We are happy to have the opportunity to potentially partner with them to create new local jobs and revenue that will significantly improve the quality of life for everyone in Prince Rupert.”
Pembina will be conducting initial technical assessments and evaluating the project’s feasibility, in addition to meeting with local First Nations and stakeholders. Following this process, Pembina’s Board of Directors will evaluate the project and determine a Final Investment Decision (FID).
“Watson Island has great potential as a LPG export terminal location,” says Mick Dilger, Pembina’s President & CEO. “Early impressions of the site are promising, and we’re happy to be working with the City of Prince Rupert.”
Pembina Pipeline Corporation is a Canadian company focused on the safe, reliable operation of energy infrastructure. They are a transportation, midstream and gas service provider that has been serving North America’s energy industry for over 60 years with positive relationships with various municipalities and First Nations in the areas surrounding their operations.
If plans move ahead, this proponent would be the first tenant for the Watson Island site since plans were made to dismantle the former pulp mill. The project is anticipated to use only a portion of the 280 acres available on the old pulp mill site. In January, the City of Prince Rupert leased a portion of Watson Island to Legacy Inc. in order to help facilitate new commercial operations.
Distributions from lease revenues were determined to be a more stable source of income for the municipality, and are considered a practical direction for the diversification of City revenues. Moving forward, the City and its wholly owned corporation will continue to work diligently in order to generate both lease revenues and future taxation from Watson Island, which will contribute to a more resilient local economy.
